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    Lodha Developers Limited

    LODHAStrong
    Realty·28 Jul 2025
    Management Summary

    Lodha delivered best-ever Q1 presales of INR 44.5 billion despite two weeks of India-Pakistan geopolitical tension in May. The company achieved exceptional business development of INR 227 billion GDV, front-loading over 90% of full-year guidance. Environmental clearance delays since August 2024 are expected to be resolved by the Supreme Court this quarter. Management is bullish on mid-income demand driven by rate cuts and income tax cuts, targeting a new base of INR 50 billion quarterly presales. NCR entry planned within 12 months.

    Highlights

    8

    • Best ever Q1 presales at INR 44.5 billion, up 10% YoY; 6th consecutive quarter above INR 40 billion

    • Embedded EBITDA margin at 33% with JDA at 38% of presales (in line with long-term guidance)

    • Pro forma PAT INR 9.5 billion (21% margin); on track for ~20% ROE

    • Net debt at INR 50.8 billion (0.24x equity); cost of funds at 8.3%, down 40 bps QoQ

    • Business development of INR 227 billion GDV in Q1 (>90% of full year guidance); 5 projects across Mumbai, Pune, Bangalore

    • Bangalore BD of INR 84 billion in Q1 (exceeding full year FY25 Bangalore BD); growth phase scaling

    • Non-launch weekly sales at INR 275-280 crores, targeting INR 300 crores by FY end

    • Collections grew 7% YoY to ~INR 29 billion; launch pipeline of INR 250 billion for FY26

    Concerns

    1

    • Environmental clearance blockage since August 2024 constraining supply

    What Changed4

    vs Q2 FY26

    Tone shiftHighly confident with transformational data center vision → StrongGuidance items5 → 3 (-2)Risks discussed4 → 3 (-1)Q&A highlights5 → 3 (-2)
    Key financials

    Metrics

    11

    Periods

    2

    Headline

    9
    • Embedded EBITDA Margin
      33%
    • Pro Forma PAT
      $9.5B
    • PAT Margin
      21%
    • Net Debt
      $50.8B
    • Net Debt to Equity
      0.24 ratio

    Q1

    2
    • Presales
      $44.5B
      YoY+10%
    • Price Growth
      2%

    Guidance & targets

    3
    CategoryTargetPriority
    Presales
    FY26 presales guidance
    INR 210 billion; targeting INR 50 billion quarterly base
    		High
    Growth
    Non-launch weekly sales target
    INR 300 crores per week by FY end
    		High
    Expansion
    NCR entry
    Within 12 months; launch FY27
    		Medium

    Risks & concerns

    3
    RiskSeverity

    Environmental clearance blockage since August 2024 constraining supply

    NGT order preventing environmental clearances nationwide since Aug 2024. Supreme Court expected to decide this quarter. Blocking new project approvals in Mumbai and other cities. — Management acknowledged

    high

    Geopolitical disruption (India-Pakistan tension) affected May sales

    Two weeks of geopolitical tension in May 2025 moderately affected Q1 presales. Management says it doesn't affect full year growth outlook. — Management acknowledged

    low

    IT sector weakness and lender concerns could affect housing demand

    Management addressed concern directly: top developers constrained by supply not demand. Non-launch weekly sales tracking higher YoY. Real estate driven by households with >INR 1 million annual income. — Analyst downplayed

    medium

    Q&A highlights

    3

    “Non-launch weekly sales around Rs. 275-280 crores per week, much higher than same period last year. Top 5 developers constrained by supply not demand. Short-term demand aberration unlikely to impact sales.”

    Directly addresses market anxiety about IT sector headwinds affecting housing demand

    asked by Analyst

    1 min read5 chapters

    Detailed Narrative

    01

    Best-Ever Q1 Despite Geopolitical Disruption

    Presales of INR 44.5 billion grew 10% YoY despite two weeks of India-Pakistan tension in May. Non-launch weekly sales running at INR 275-280 crores, well above prior year. Management targeting INR 50 billion quarterly base and INR 300 crores weekly non-launch sales by year end. H1 expected at 40-45% of AOP with upward bias.

    02

    Exceptional Business Development Front-Loading

    Q1 BD of INR 227 billion GDV across 5 projects exceeds 90% of full year guidance. Bangalore BD of INR 84 billion surpassed full FY25 Bangalore additions, signaling growth phase acceleration. Industry consolidation favoring top brands on supply side continues. NCR entry planned within 12 months with pilot phase launch in FY27.

    03

    Conservative Balance Sheet Maintained

    Net debt at INR 50.8 billion (0.24x equity) well below 0.5x ceiling despite significant BD investments. Cost of funds reduced 40 bps QoQ to 8.3%. Collections grew 7% to ~INR 29 billion. Management expects debt levels to moderate in H2 after H1 BD front-loading.

    04

    Environmental Clearance Resolution Imminent

    Environmental clearances blocked nationwide since August 2024 due to NGT order. Supreme Court decision expected this quarter. Resolution critical for scaling supply and achieving full-year targets. Launch pipeline of INR 250 billion for FY26 with heavier H2 emphasis.

    05

    Market Fundamentals Support Continued Growth

    RBI rate cuts (50 bps YTD) and income tax benefits for households up to INR 25 lakhs boosting mid-income demand. Green-certified portfolio exceeds 60 million sq ft. 2% price growth in Q1 on track for 6% full year target. Real estate multiplier to economic activity is highest of any sector.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.